VAW: After Massive Underperformance, Some Real Potential

Summary

  • The materials sector is underowned and poised for growth as China's economy stabilizes and global infrastructure spending increases.
  • Vanguard Materials Index Fund ETF Shares is a low-cost option to invest in the US materials market, with diversified holdings across 120 stocks.
  • The VAW ETF's sector composition is heavy on chemicals and industrial gases, with exposure to various materials-related businesses, offering potential growth opportunities.
  • Looking for a helping hand in the market? Members of The Lead-Lag Report get exclusive ideas and guidance to navigate any climate. Learn More »

Different types of roof coating. Sheet metal profiles, ceramic tiles, asphalt roofing shingles and gypsum slate isolated on white background.

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I think the Materials sector is enormously underowned. Relative to the S&P 500 (SP500), it’s actually as of writing below the Covid crash levels of 2020. And yet, as China’s economy likely bottoms here, and as infrastructure spending wraps up


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This article was written by

30.6K Followers
Michael A. Gayed is portfolio manager, and author of five award-winning research papers on market anomalies and investing. He has a BS with a double major in Finance & Management from NYU Stern School of Business, and is a CFA Charterholder. Michael runs the investing group The Lead-Lag Report, focused on helping investors outperform in all market conditions. It offers a tactical, data-driven approach to investing, to achieve long-term success even in the face of uncertainty. With increasing market volatility, it's essential to understand risk-on/risk-off signals, seize high-yield opportunities, and leverage award-winning research to maximize returns. Learn More.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The Lead-Lag Report is provided by Lead-Lag Publishing, LLC. All opinions and views mentioned in this report constitute our judgments as of the date of writing and are subject to change at any time. Information within this material is not intended to be used as a primary basis for investment decisions and should also not be construed as advice meeting the particular investment needs of any individual investor. Trading signals produced by the Lead-Lag Report are independent of other services provided by Lead-Lag Publishing, LLC or its affiliates, and the positioning of accounts under their management may differ. Please remember that investing involves risk, including loss of principal, and past performance may not be indicative of future results. Lead-Lag Publishing, LLC, its members, officers, directors, and employees expressly disclaim all liability with respect to actions taken based on any or all of the information in this writing.

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